Tax Saving Mutual Funds
Mutual Fund is a trust which subscribes its schemes to a number of policy holders and in turn safeguards their savings. Every scheme of the mutual fund is different in terms and conditions and represents an unbiased right in the benefits of the mutual fund for every fund holder.
Another important aspect to consider is the amount of returns that the fund offers in comparison to other tax saving funds. Decent returns can be attained by following an aggressive investment approach.
Identify the most rewarding tax saving funds which have rewarded its investors on per unit of risk taken by them and opt for it. Also look for other hidden expenses such as fund manager's income, marketing expenses, managing expenses, etc. The expenditure of investing in a mutual fund is calculated by the expense ratio which signifies the proportion of the fund's assets that go towards the expenses of maintaining the fund.
Guidelines for Tax Saving Mutual Funds in India
Tax Saving Mutual Funds in India normally abide by the following guidelines while permitting tax advantages on their plans:- Tax benefits to be mentioned under the "objects of the offering" column.
- Any exclusive tax advantages for the mutual fund company and its shareholders by mentioning the section number of the Income Tax Act without revealing the content of the section.
Things to consider before entering a mutual fund scheme
Before going for the best suited tax saving mutual fund, it is vital for an investor to consider certain factors like:- Consider parameters like current performance of the fund in the market, expenditures likely to be incurred, method of investment, etc. to guarantee that the investor starts considering his fund at par with the usual diversified equity fund which could lead to inappropriate asset allotment.
- Investors should preferably invest in funds where the principal assets are chiefly equity funds.
- Invest in promising market and steer clear from risks
- To make money include more equity funds in your investment portfolio and invest in rewarding mutual funds
Evaluating performance of a tax saving mutual fund
The basic criteria for an investor to bear in mind before opting for a tax saving mutual fund is the current performance of that specific fund. Performance is significant constraint, through which a fund attracts prospective investors before they consider it for investing. Generally the performance of all the major equity related investments are considered on the basis of 3-5 year of its investment period. While analyzing the performance of a fund emphasis should be laid on premium and consistency of the fund in the market.Another important aspect to consider is the amount of returns that the fund offers in comparison to other tax saving funds. Decent returns can be attained by following an aggressive investment approach.
Identify the most rewarding tax saving funds which have rewarded its investors on per unit of risk taken by them and opt for it. Also look for other hidden expenses such as fund manager's income, marketing expenses, managing expenses, etc. The expenditure of investing in a mutual fund is calculated by the expense ratio which signifies the proportion of the fund's assets that go towards the expenses of maintaining the fund.
List of Popular Tax saving mutual funds in India
- Reliance Tax Saver Direct-G
- IDBI Equity Advantage Direct-G
- IDBI Equity Advantage Reg-G
- L&T Long Term Adv I-G
- L&T Tax Saver-G
- Reliance Tax Saver-G
- Religare Invesco AGILE Tax-G
- Sahara Tax Gain Direct-G
- Sahara Tax Gain-G
- SBI Long Term Advantage Series I Direct-G
- SBI Long Term Advantage Series I Reg-G
- SBI Long Term Advantage Series II Direct-G
- SBI Long Term Advantage Series II Reg-G
- SBI Tax Advantage Series I-G
- SBI Tax Advantage Series II-G
- SBI Tax Advantage Series III Direct-G
- SBI Tax Advantage Series III Reg-G
- Sundaram Long Term Tax Advantage Sr I Direct-G
- Sundaram Long Term Tax Advantage Sr I Reg-G
- Sundaram Taxsaver Direct-G
- Sundaram Taxsaver-G
- Tata Tax Saving Fund Direct-G
- Tata Tax Saving Fund-G
- Taurus Tax Shield Direct-G
- Taurus Tax Shield Reg-G
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